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CIO OF SAN' BERNARDQO - 'REQUOT FOR COUNCIL AcOoN
From:
Ralph H. Prince
City Attorney
Su~ect: Conflict of Interest Ordinance/
Resolution of Community
Development Commission
Dept:
Oa~: August 27, 1986
Synopsis of Previous Council action:
NONE.
Recommended motion:
i-1AYOR AND COMMON COUNCIL
Waive further first reading of the ordinance, and layover
for final adoption.
COMMUNITY DEVELOPMENT COMMISSION
Waive further reading of the resolution, and adopt.
Contact person: Ralph H. Prince/Allen R. Briggs Phone: 5255/5256
Yes. Ward: All
Supporting data attached:
FUNDING REQUIREMENTS: Amount: None. Sou rce:
Finance:
Council Notes:
75-0262
Agenda Item~ -{ ~'q
clOt OF SAN BERNARDOIo - REQUOT FOR COUNCIL ~ON
STAFF REPORT
By memo dated August 25, 1986, Ralph Hernandez, Mayor Pro
Tempore, directed the preparation of a City ordinance and a
resolution relating to conflicts of interest.
State law allows cities and other local and state
agencies to adopt more stringent standards relating to conflicts
of interest than exist under the Political Reform Act, of 1974.
The attached ordinance and resolution would adopt for the
City of San Bernardino, the Community Development Commission of
the City of San Bernardino and the Redevelopment Agency
standards stricter than those required by state law. The
ordinance drafted by this office is intended to assure the
pUblic that all decisions made are in the pUblic interest, and
that no council member or City, Commission, or Agency employee
would stand to gain personally from his or her official actions.
The ordinance broadly defines "interest in property" to
include any leasehold, lien, beneficial or ownership interest in
property, real or personal, whether present or contingent, or an
option to acquire any such interest.
The ordinance further specifies that no local officer
(defined to include the Mayor, each council member, and all
employees of the City, the Commission and the Redevelopment
Agency) shall propose a contract or enter into a contract with
any business entity which is seeking or which has in existence a
contract (other than one obtained through competitive bidding
relating to purchasing). It also prohibits such contracts or
offers to contract for one year after such a contract has been
signed between a business entity and the City, the Commission
or the Redevelopment Agency.
The term local official is also described to include any
business entity in which the local official is a partner,
officer, or board member, or in which the official and his or
her spouse own a five per cent interest or greater.
Other prohibited acts by local officials (officers or
employees) include influencing or attempting to influence a
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Other prohibited acts by local officials (officers or
employees) include influencing or attempting to influence a
decision relating to property in which the local official holds
an interest, as defined, and prohibits participating in the
making of a decision where it appears to a reasonable person
that such decision or action will or may result in economic or
business benefit to the official.
Violations are deemed to be misdemeanors, punishable by
up to six months in jailor a fine of $500, or both, as
authorized by the City Charter.
The resolution basically adopts the same terms as the
ordinance (except for the penalty provisions, which the
Commission is not authorized to impose), and includes an
additional provision prohibiting the acquisition ,of such an
interest in property in any redevelopment project area after the
adoption of the resolution.
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ORDINANCE NO.
ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAPTER 2.61
2 TO THE SAN BERNARDINO MUNICIPAL CODE TO IMPOSE REQUIREMENTS
3 CONCERNING CONFLICTS OF INTEREST IN ADDITION TO THOSE IMPOSED BY
THE POLITICAL REFORM ACT OF 1974, AND PROVIDING FOR THE
4 PUNISHMENT OF VIOLATIONS THEREOF.
5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
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SECTION 1. Chapter 2.61 is added to the San Bernardino
8 Municipal Code to read as follows:
9 .Chapter 2.60
10 CONFLICTS OF INTEREST
11 2.61.010. PURPOSE AND EFFECT.
12 Pursuant to Section 81013 of the Government Code, the City
13 hereby adopts the following requirements relating to conflicts of
14 interest in addition to those imposed by the POlitical Reform Act
15 of 1974. These additional provisions shall apply to all members
16 of the Mayor and Common 'Council, and all employees of the City of
17 San Bernardino. Inasmuch as all members of the Community
18 Development Commission of The City of San Bernardino serve in
19 that capacity sOlely because of their position as members of the
20 Mayor and Common Council, these regulations shall also apply to
21 all members of the Mayor and Common Council while serving in
~ their capacity as members of the Community Development
23 Commission. Employees of the Redevelopment Agency of the City of
24 San Bernardino are likewise included. It is the purpose of these
25 regulations that no official or employee of the City, the
26 Community Development Commission of the City of San Bernardino,
27 or of the Redevelopment Agency of the City of San Bernardino
28 shall benefit from his or her official position or employment in
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dealings with persons and business entities doing business with
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the City, the Community Development Commission of the City of San
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Bernardino, or its Redevelopment Agency, and to assure that no
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local official participates in any governmental decision where it
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appears to a reasonable person that such decision mayor will
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result in economic or business benefit to the local official.
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2.61.020. DEFINITIONS.
A. .Administrative action. means the proposal, drafting,
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9 development, consideration, negotiation, amendment, approval,
10 enactment or defeat by the City, Commission, or the Agency of any
11 contract, agreement, rule, regulation, or other action being
12 proposed for consideration by City, Commission or Agency.
13 B. .Agency. means the Redevelopment Agency of the City
of San Bernardino.
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15 C. .Business entity. means any organization or
16 enterprise operated for profit including but not limited to a
17 proprietorship, partnership, firm, business trust, joint venture,
18 syndicate, corporation or association.
19 D. .City. means the City of San Bernardino.
20 E. .Commission. means the Community Development
2] Commission of the City of San Bernardino.
22 F. .Interest in property. means any leasehold, lien,
23 beneficial or ownership interest in property, real or personal,
24 whether present or contingent, or an option to acquire any such
25 interest, without regard to the value of the property.
26 G. .Local official. means any member of the Mayor and
27 ommon Council of the City, any member of the Commission, and
28 very officer, employee or consultant of the City, the Commission
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or the Agency. For purposes of this Chapter, local official
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includes any business entity in which the local official is a
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partner, officer, or board member, or in which the local official
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and his or her spouse combined own, directly, indirectly, or
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beneficially, a five per cent interest or greater.
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2.61.030. PROHIBITED ACTIONS.
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A. No local official shall propose to enter into a
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contract with, submit a bid to, make an offer of contract with,
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enter into a listing or commission agreement with, contract with,
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or in any manner, direct or indirect, seek an economic or
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business benefit from, any business entity which is then
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negotiating with the City, Commission or Agency, or which has an
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13 outstanding contract with the City, Commission or Agency
14 whereunder such business entity is doing business with the City,
15 Commission or Agency other than through City's competitive
16 biddinglpurchasing process. No local official shall take any
17 such action involving any such business entity within one year
18 after any such Agreement has been entered into with the City,
19 Commission or Agency.
20 B. No local official shall take any administrative
21 action, influence or attempt to'influence legislative or
~ administrative action, make, participate in making, or in any way
23 attempt to use his or her official position to influence~a
24 governmental decision or administrative action relating to any
25 property in which the local official holds an interest as defined
26 herein or in which he or she knows or has reason to know such
27 local official has a financial interest.
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C. No local official shall participate in any
governmental decision or administrative action where it appears
to a reasonable person that such decision or action mayor will
result in an economic or business benefit to the local official.
D. Nothing in this chapter shall be deemed to preclude
any local official from dealing with any such business entity as
a customer in the ordinary course of business provided that no
special benefit, discount, reward, rebate or other consideration
is granted to such local official different in kind or scope than
routinely offered by such business entity to customers in the
ordinary course of business.
2.61.040 VIOLATION--PENALTY.
Any person who violates any provision of this chapter is
guilty of a misdemeanor, and upon conviction thereof is
punishable in accordance with the provisions of Section 1.12.010
of this Code.-
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on the
day of , 1986, by the following vote, to
Council Members
City Clerk
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The foregoing ordinance is hereby approved this
day
of
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, 1986.
Mayor of the City of San Bernardino
5 Approved as to form:,
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)4. 4.'~8 City Attornei~
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